Advisors discuss the best ways to grow AUM during an economic downturn

ARTICLE SUMMARY

1. Recessions create client opportunities: According to a recent study, recessions are the second biggest driver for advisor growth (after inheritances), with recession odds increasing to 45-60% according to major banks following recent tariff announcements.

2. Value proposition becomes clearer: During downturns, advisors can emphasize stability, security, long-term planning, and holistic wealth management approaches beyond just investment management.

3. Referrals increase in importance: As Dirk Hall, COO of Ballast Rock Private Wealth, explains: "Asking existing clients for referrals now is a great approach, because they can share their own positive interactions with their advisors with potential clients who don't have that benefit."

4. Business owners represent opportunity: Hall also notes that recessions trigger new business creation: "Microsoft (Ticker: MSFT) was started amid the economic slump of the mid-1970s, while tech companies like AirBNB came out of the Great Recession. Advisors can position themselves as being helpful beyond managing a portfolio to lending their advice to getting a business off the ground, running, and thriving."